The Economic Survey for 2024-25 will be tabled before both the Houses of Parliament on January 31, the first day of the Budget Session, presenting the Finance Ministry's view on the state of the economy. Later in the day, Government's Chief Economic Adviser V Anantha Nageswaran will be speaking to media, sharing his insights from the Economic Survey.
The survey has always been presented a day before the Union Budget, barring election years, when the Centre instead presents an interim financial statement or a Vote on Account, and the full version is unveiled after the formation of the new government.
However, in a break from tradition, last year, the government presented a 'review' on January 31, 2024, ahead of the interim budget for 2024-25. The Economic Survey 2023-24 however, was presented a day before the full Budget in July 2023, after the new government had been sworn in.
What is an Economic Survey?
Prepared by the Economic Division of the Department of Economic Affairs (DEA), under the Chief Economic Adviser's guidance, the survey is approved by the Finance Minister before being tabled in the Parliament.
The survey was initially part of the Union Budget and issued in one volume, covering various sectors of economy and policy matters such as fiscal health, employment, and inflation.
From 2010-11 to 2020-21, it was presented in two volumes, with the additional volume containing the CEA’s observations on major economic issues. However, from 2022-23, it reverted to the single-volume format.
Read More: India has a shot at shaping world order, says CEA Nageswaran ahead of Eco Survey
The Survey is an economic report card of the ongoing financial year, and offers statistics on key aspects like growth, trade, external finances, among others. The most sought-after statistic in the Economic Survey is GDP estimate for the next fiscal.
The Economic Survey for 2023-24 had estimated the GDP growth in the range of 6.5-7 percent for the current financial year. The first advance estimates released by the government have shown that the GDP growth is likely to settle below the 7 percent mark for the first time in four years, at 6.4 percent for FY25.
Read More: What to expect from CEA Nageswaran's third Economic Survey?
The Survey also pitches fresh ideas on reforms that may seep into policy making, or become a topic of debate. For instance, the Economic Survey 2023-24 had proposed two key ideas - first one being the need to be open to more Foreign Direct Investment (FDI) from China to plug the widening trade gap with Beijing - and second, a case for changing the inflation-targetting framework of the Reserve Bank by excluding food inflation. Both suggestions became part of debates relating to the economy, within and outside the policy corridors.
Though the survey’s recommendations are not binding, it remains the most authoritative and comprehensive analysis of India’s economy from within the government. It also provides a crucial framework for understanding the economic trends and policy directions.
The upcoming Economic Survey 2024-25 will not only carry observations on the current financial year, but may potentially have ideas for the coming year, or beyond.
This year's Survey is significant as it will be presented amid concerns around weakening consumption, sticky food inflation and uncertainty over a more protectionist America under President Donald Trump, potentially threatening tariff wars.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
